Citi Objects To American Home Subservicing Deal

Law360, New York (January 3, 2008, 12:00 AM EST) -- A Citigroup Inc. subsidiary objected on Thursday to bankrupt mortgage lender American Home Mortgage Holdings Inc.'s plan to enter into a new subservicing agreements in preparation for its impending sale.

Judge Christopher Sontchi approved the $500 million sale of AHM’s servicing business to the newly created AH Mortgage Acquisition Co., which is owned by billionaire Wilbur L. Ross Jr., on Oct. 30. The closing of the sale was scheduled to take part in two stages: an initial closing in mid-November and a final closing in the...